A channel separation algorithm for the frequency division multiple access/time division multiplexing (FDMA/TDM) scheme is presented. It is shown that implementation using this algorithm can be wore effective than the fast Fourier transform (FFT) algorithm when only a small number of carriers need to be selected from many, such as satellite Earth terminals. The algorithm is based on polyphase filtering followed by application of a generalized Walsh-Hadamard transform (GWHT). Comparison of the transform technique used in this algorithm with discrete Fourier transform (DFT) and FFT is given. Estimates of the computational rates and power requirements to implement this system are also given.